Final Results
20 Novembre 2003 - 8:01AM
UK Regulatory
RNS Number:2818S
Scottish Radio Holdings PLC
20 November 2003
20 November 2003
SCOTTISH RADIO HOLDINGS plc ("SRH")
PRELIMINARY RESULTS FOR YEAR
ENDED 30 SEPTEMBER 2003
SRH shows strong growth in revenues and operating profits
FINANCIAL HIGHLIGHTS
* Turnover from continuing operations up 18% to #83.5m (2002: #70.5m) with
like-for-like revenues up 6%
* Group operating profit* from continuing operations up 26% to #19.0m
(2002: #15.1m)
* Adjusted earnings per share up 26% to 37.2p (2002: 29.5p) with basic
earnings per share up to 21.9p (2002: loss per share of 49.7p)
* Dividends up 8% to 19.5p per share
* Net borrowings of #51.7m at year end, representing gearing of 44%, after
acquisition spend of #17.6m during the year
* Excluding goodwill amortisation under FRS 10
OPERATIONAL HIGHLIGHTS
* Radio - revenues up 19% from continuing operations
- acquisitions of Vibe 101 and Vibe FM enhances presence in England
- proposed acquisition of FM 104 in Dublin expands the group's
portfolio of local radio assets
* Press - revenues up 17% from continuing operations
* Strong start to trading to date in October and November
- group revenues up 11%
- group like-for-like revenues up 7%
Commenting on the results, SRH Chairman, Lord Gordon of Strathblane CBE, said:
"These results underline the strength of the SRH group and the strong growth in
revenues and operating profits in our radio and press divisions is extremely
encouraging. Both divisions produced outstanding performances during a year of
still challenging market conditions. SRH is well placed for continued growth
with its portfolio of radio stations in recognised geographical marketing areas
and well-established press titles. The new financial year has started well with
group revenues from continuing operations 11% ahead of the same period last
year".
For further information please contact:
Scottish Radio Holdings plc Today: Tel: 020 7597 5870
Richard Findlay, Chief Executive Thereafter: 0141 565 2202
Alan Wilson, Finance Director 0141 565 2242
Gavin Anderson & Company
Byron Ousey / Ken Cronin Tel: 020 7554 1400
PRELIMINARY ANNOUNCEMENT OF RESULTS FOR YEAR TO 30 SEPTEMBER 2003
The continuing robustness in SRH local revenues has been aided by an improvement
in national advertising which for some time had been generally weak across the
UK media sector. Within a difficult market-place SRH has continued to grow its
business both organically and by acquisition. Excluding acquisitions and
disposals, like-for-like group revenues are up 6%. SRH has continued to develop
its business by making two radio acquisitions during the year and since the end
of the financial year, the Board has entered into an agreement to purchase FM104
in Dublin. The transaction, which has been approved in principle by the
Broadcasting Commission for Ireland, is conditional on the approval of the
Republic of Ireland Competition Authority and Minister for Enterprise, Trade and
Employment. The group continues to generate strong margins and cashflow. In view
of the group's good performance, the Board is recommending to shareholders an 8%
increase in the final dividend to 13.0p.
FINANCIAL RESULTS
Turnover from continuing operations, excluding acquisitions during the year,
grew by 18% from #70.5m to #83.0m; turnover from acquisitions amounted to #0.5m.
Group operating profit, before amortisation of goodwill, rose by 26% from #15.1m
to #19.0m.
The table below shows that profit before interest, exceptionals and goodwill was
#19.4m (2002: #14.5m) and profit before exceptionals and goodwill increased by
32% from #12.8m to #16.9m. Adjusted earnings per share rose by 26% to 37.2p
(2002: 29.5p) after adding back goodwill amortisation.
The group had net borrowings of #51.7m at 30 September 2003.
The Board is recommending that the final dividend be increased to 13.0p, making,
with the interim dividend of 6.5p per share paid in July 2003, a total for the
year of 19.5p, an increase of 8% on last year. The final dividend will be paid
on 26 January 2004 to shareholders on the Register at 9 January 2004. The
ex-dividend date is 7 January 2004.
ANALYSIS OF GROUP PROFITABLITY
The following table analyses the group's results for the year by business
activity.
Turnover Profit/(Loss) Operating
margin
Year ended 30 September 2003 2002 2003 2002 2003 2002
#m #m #m #m % %
Analogue Radio 49.2 41.3 13.7 11.2 27.8 27.1
Score Press 32.3 27.6 9.6 7.4 29.7 26.8
------ ------ ------ ------ ------ ------
Sub-total 81.5 68.9 23.3 18.6 28.6 27.0
Score Outdoor * - 13.0 - (1.0) - (7.7)
Digital & Internet 2.0 1.6 (1.3) ( 1.1)
Central Costs (2.6) ( 2.0)
------ ------ ------ ------
Group turnover 83.5 83.5
------ ------
Profit before interest, exceptionals
and goodwill 19.4 14.5 23.2 17.4
Net interest payable and similar
charges (2.5) (1.7)
------ ------
Profit before exceptionals and
goodwill 16.9 12.8
Goodwill amortisation (5.9) (5.1)
Exceptional gain on disposal of
tangible fixed assets 0.8 -
Exceptional loss on disposal of
subsidiary - (21.2)
------ ------
Profit /(loss) on ordinary
activities before tax 11.8 (13.5)
------ ------
* disposed of 25 July 2002
ANALOGUE RADIO
The most recent audience research data, covering the period to September 2003
was published on 23 October and confirmed that the group's UK local radio
companies continue to provide the most popular radio services in the areas they
serve.
For the financial year to September 2003 radio revenues from continuing
operations were up 19% on last year. Total like-for-like radio broadcast
revenues (in constant currency terms) were 6% up on last year reflecting an
increase of 9% in national advertising revenue; 3% growth in local advertising
revenues and sponsorship and promotions income increasing by 8% (in the latter
two cases against a strong performance last year). The profit margin for the
year was 28% (2002 - 27%).
Last year the company announced the formation of a joint venture company with
fellow radio group, GWR Group plc. The joint venture company, Vibe Radio
Services Limited was 51% owned by SRH and 49% by GWR and wholly owned two
regional radio stations in England, Vibe 101 based in Bristol and serving the
West of England and South Wales and Vibe FM serving the East of England. The
value put on both stations for the purposes of the transaction was #36m and
therefore SRH invested #18.36m for its 51% stake. On 16 May 2003 the Competition
Minister announced that she had accepted the Competition Commission's Report
that the joint venture would be expected to operate against the public interest.
On 31 July 2003 SRH announced it had reached agreement to purchase for cash
consideration of #17.64m GWR's 49% interest in the joint venture company, Vibe
Radio Services Limited. Vibe 101 and Vibe FM are each designed to appeal to the
important 15-24 year old market.
The company continues to explore other opportunities for expansion and on 24
October 2003 announced the proposed acquisition of FM 104 in Dublin. FM 104 had
its licence renewed in July 2003 for ten years (see note 19).
DIGITAL AND INTERNET
The Board's strategy on internet and digital developments is proceeding well.
The group's radio station websites have been further developed across the year
and are proving increasingly popular with listeners featuring competitions,
presenter profiles, news, programming and other information.
The Board's digital radio development programme continues to plan with six
digital multiplexes now operational in Glasgow, Edinburgh, Ayr, Dundee,
Inverness and Northern Ireland. All the companies' major analogue licences have
been granted formal extensions by the Radio Authority.
The group's net expenditure on digital & internet activities for the financial
year to September 2003 was #1.3m.
SCORE PRESS
Score Press has concentrations of interest in Scotland, Northern Ireland and the
Republic of Ireland, where the company has become a significant media player. Of
the 43 local weekly newspapers currently published by the group there are 15 in
Scotland, 23 in Northern Ireland and 5 in the Republic of Ireland. With the
addition of four new titles last year the company is pleased with the continuing
successful development of the Score Press division.
Profit from continuing operations was #9.6m, an increase of 30% compared with
last year. The profit margin on continuing activities was 30% (2002 - 27%).
Total Score Press revenues from continuing operations increased by 17% over last
year. Like-for-like revenues (in constant currency terms) increased by 4% over
last year with advertising and circulation revenues growing by 5% and 2%
respectively with an increase in other revenues (mainly from printing contracts)
of 2%.
FINANCIAL STRENGTH
The group was strongly cash generative during the year which helped give rise to
operating cash inflows of #20.2m, representing a cash conversion rate of 94% of
EBITDA. #3.5m of taxes were paid; #6.2m was paid to shareholders as dividend;
#5.0m was invested in tangible fixed assets and #17.6m was spent on
acquisitions. The net decrease in cash in the year was #10.9m.
The group had borrowings as at 30 September 2003 of #51.7m (gearing of 44%) made
up of year end net overdraft of #29.0m plus the value of loan notes issued in
2000 in connection with the acquisition of Kilkenny People Holdings. Excluding
loan notes of #22.7m, the group has a revolving credit facility of #60m.
With interest cover of 8.6 times and being strongly cash generative, SRH remains
well placed to take advantage of growth opportunities in both radio and press.
CURRENT TRADING AND OUTLOOK
These results underline the continued and profitable expansion of the SRH group.
SRH is a leading commercial radio broadcaster and publisher of weekly newspapers
with significant regional strength in Scotland and Ireland and with an
increasing radio presence in England. SRH is well-placed for continuing organic
growth, with its balanced portfolio of market-leading radio companies clustered
in recognisable geographical marketing areas, and solid press titles. The
group's ability to focus on local radio and newspaper sales has cushioned it
during the recent period of weakened national advertising spend. With our own
strong national sales force, the company was well positioned during the year to
take advantage of an improvement in the national advertising marketplace.
Trading for the first two months of the new financial year has shown an increase
in like-for-like radio revenues of 9% (continuing operations plus 15%) and press
revenues of 3%.
Group Profit and Loss
Account
Year ended 30 September 2003 Year ended 30 September 2002
Note Continuing Continuing Discontinued
Operations Operations Operations
Total Total
#m #m #m #m
Group and share of joint venture 84.9 70.5 13.0 83.5
Less share of (1.4) - - -
------ ------ ------ -----
Turnover 1 83.5 70.5 13.0 83.5
------ ------ ------ -----
EBITDA 21.5 17.2 (0.4) 16.8
Depreciation (2.5) (2.1) (0.6) (2.7)
------ ------ ------ -----
EBITA 19.0 15.1 (1.0) 14.1
Goodwilltion (5.1) (2.7) (2.4) (5.1)
------ ------ ------ -----
Group operating
profit/(loss) 1 13.9 12.4 (3.4) 9.0
Share of operating profits of
associated undertakings - 0.2 - 0.2
------
Share of underlying profits of
joint venture 0.1
Share of goodwill amortisation
attributable to joint venture (0.8)
------
Share of profit attributable
to joint venture (0.7) - - -
------- ------ ------ ------
Total operating profit/(loss) 13.2 12.6 (3.4) 9.2
(Loss) on disposal of subsidiaries - - (21.2) (21.2)
Gain on disposal of tangible fixed assets 0.8 - - -
Income from investments 0.3 0.2 - 0.2
------- ------ ------ ------
Profit/(loss)on ordinary activities
before interest 14.3 12.8 (24.6) (11.8)
Net interest payable and
other similar charges 3 (2.5) (1.7)
------- ------
Profit /(loss) on ordinary
activities before taxation 11.8 (13.5)
Tax on profit/(loss) on ordinary
activities 4 (4.5) (3.0)
------- ------
Profit/(loss) for the financial year 7.3 (16.5)
Dividends paid and proposed 8 (6.5) (6.0)
------- ------
Retained profit/(loss)
for the financial year 0.8 (22.5)
------- ------
Earnings/(loss) per share (pence) 5 21.9 (49.7)
Adjusted earnings per
share (pence) 6 37.2 29.5
Diluted earnings/(loss) per share
(pence) 7 21.9 (49.7)
Dividends per share (pence) 8 19.5 18.0
The contribution to the current year results of the acquisition during the year
is not shown separately above as it is not material.
Group statement of total recognised gains and losses
for the year ended 30 September 2003
2003 2002
#m #m
Profit/(loss) for the financial year 7.3 (16.5)
Currency difference on translation of overseas subsidiaries 8.2 0.1
Currency difference on retranslation of foreign currency borrowings (2.4) (0.1)
------ ------
Total recognised gains/(losses) for the financial year 13.1 (16.5)
------ ------
Group Balance Sheet As at As at
30 Sept 2003 30 Sept 2002
Notes #m #m
Fixed assets
Intangible assets 9 148.0 112.9
Tangible assets 10 17.0 15.2
Investments
Investment in joint venture 11
Share of gross assets - 0.5
Share of gross liabilities - (1.0)
-------- --------
- (0.5)
Goodwill arising - 19.0
Net investment in joint venture - 18.5
Other Investments 12 1.1 1.1
-------- --------
Total fixed assets 166.1 147.7
-------- --------
Current assets
Stocks 0.5 0.5
Debtors 13 20.9 17.6
Cash at bank and in hand 15.5 10.0
-------- --------
36.9 28.1
Creditors
Amounts falling due within one year 14 (84.8) (63.1)
-------- --------
Net Current Liabilities (47.9) (35.0)
-------- --------
Total Assets less Current Liabilities 118.2 112.7
Creditors
Amounts falling due after more than 15 (1.2) (1.9)
one year
Provisions for Liabilities and Charges 16 - (0.6)
-------- --------
Net assets 117.0 110.2
======== ========
Capital and Reserves
Called up share capital 17 3.3 3.3
Share premium account 18 77.8 77.6
Revaluation reserve 18 0.8 0.9
Special capital reserve 18 1.1 1.1
Merger reserve 18 20.5 20.5
Profit and loss account 18 13.5 6.8
-------- --------
Shareholders' funds - equity 18 117.0 110.2
======== ========
Group Cash Flow Statement Year ended Year ended
30 Sept 2003 30 Sept 2002
Notes #m #m
Group operating profit 13.1 9.0
Depreciation and amortisation 8.4 7.8
-------- --------
EBITDA 21.5 16.8
Change in working capital and non-cash movements (1.3) (1.6)
-------- --------
Net cash inflow from operating activities 20.2 15.2
Returns on investments and servicing of finance
Interest received 0.2 0.2
Interest paid (2.6) (1.7)
Income from investments 0.4 0.2
-------- --------
Net cash outflow from returns on
investments and servicing of finance (2.0) (1.3)
Taxation
Corporation tax paid (3.5) (4.2)
Capital expenditure and financial investment
Purchase of tangible fixed assets 10 (5.0) (3.8)
Proceeds on sale of tangible fixed assets 2.0 -
Investment in Kingdom FM - (1.0)
Net cash outflow on capital expenditure and -------- --------
financial investment (3.0) (4.8)
Acquisitions and disposals
Net cash outflow on acquisitions (17.6) (60.9)
Net cash inflow on sale of Outdoor division 1.1 32.4
Investment in Vibe Radio Services Limited - (18.5)
-------- --------
Net cash outflow for acquisitions and disposals (16.5) (47.0)
Equity dividends paid (6.2) (5.8)
-------- --------
Net cash outflow before financing (11.0) (47.9)
Financing
Proceeds from issue of ordinary share capital 0.2 0.1
Capital element of finance leases and hire purchase contracts (0.1) -
Repayment of loan notes - (1.2)
-------- --------
Net cash inflow/(outflow) from financing activities 0.1 (1.1)
-------- --------
Decrease in cash in the year (10.9) (49.0)
======== ========
Year ended Year ended
Change in working capital 30 Sept 2003 30 Sept 2002
and non-cash movements #m #m
Increase in stock - (0.2)
(Increase)/decrease in debtors (1.7) 0.8
Increase/(decrease) in creditors and provisions 0.5 (2.4)
Gain/(loss) on disposal of tangible fixed assets (0.1) 0.2
-------- --------
Change in working capital and non-cash movements (1.3) (1.6)
======== ========
Reconciliation of net cash flow to movements in net (debt)/
funds
Decrease in cash in the year (10.9) (49.0)
Capital element of finance lease repayments 0.1 -
Cash outflow from repayment of loan notes - 1.2
-------- ---------
Change in net debt resulting from cash flows (10.8) (47.8)
Foreign exchange adjustment (2.5) (0.3)
-------- ---------
Movement in net debt in the year (13.3) (48.1)
Opening net (debt)/funds (38.4) 9.7
-------- ---------
Closing net debt (51.7) (38.4)
======== =========
Foreign
Analysis of changes in net debt At 1 Oct Exchange At 30 Sept
2002 Cash Flow Movements 2003
#m #m #m #m
Cash at bank and in hand 10.0 5.6 (0.1) 15.5
Bank overdraft (28.0) (16.5) - (44.5)
-------- -------- -------- --------
(18.0) (10.9) (0.1) (29.0)
Debt due within one year -
finance leases / HP contracts (0.1) 0.1 - -
Loans due within one year -
including loan notes (20.3) - (2.4) (22.7)
-------- -------- -------- --------
Total (38.4) (10.8) (2.5) (51.7)
-------- -------- -------- --------
Activities
The principal activities of the group are in radio and publishing. The group has
23 wholly and partly owned radio services, operates 6 digital radio multiplexes
and publishes 43 local weekly newspapers.
Accounting policies
The preliminary financial information has been prepared on the basis of the
accounting policies set out in the most recent set of annual financial
statements, for the year ended 30 September 2002 (these policies are detailed on
pages 40 and 41 of the SRH Annual Report 2002).
Notes
1. Analysis of turnover and profit
Total Total Year ended 30 September 2002
Year ended Continuing Discontinued
30 Sept 2003 Operations Operations Total
#m #m #m #m
Turnover 83.5 70.5 13.0 83.5
-------- --------- --------- ---------
Purchase of raw materials (4.9) (4.6) - (4.6)
Staff costs (24.7) (21.4) (2.1) (23.5)
Other operating charges (32.4) (27.3) (11.3) (38.6)
-------- --------- --------- ---------
(62.0) (53.3) (13.4) (66.7)
-------- --------- --------- ---------
EBITDA 21.5 17.2 (0.4) 16.8
Depreciation (2.5) (2.1) (0.6) (2.7)
-------- --------- --------- ---------
EBITA 19.0 15.1 (1.0) 14.1
Goodwill amortisation (5.1) (2.7) (2.4) (5.1)
-------- --------- --------- ---------
Group operating profit/(loss) 13.9 12.4 (3.4) 9.0
-------- --------- --------- ---------
The contribution to the current year results of the acquisition during the year
is not shown separately above as it is not material.
2. Segmental information
2003 Year on 2002
Turnover #m year #m
growth
Analogue Radio %
Existing operations 50.1 35.3
Acquisition of Wave 105 - 2.2
Acquisition of Today FM - 3.8
Acquisition of Vibe Radio Services Limited
(as a subsidiary) 0.5 -
------- --------
Group and share of joint venture 50.6 41.3
Less share of joint venture (1.4) -
------- --------
Continuing operations 49.2 19 41.3
Score Press
Existing operations 32.3 26.8
Acquisition of Longford Leader - 0.6
Acquisition of Galloway Gazette - 0.2
and Stornoway Gazette ------- --------
Continuing operations 32.3 17 27.6
Sub-total 81.5 18 68.9
Score Outdoor
------- --------
Discontinued operations - 13.0
------- --------
Digital & Internet 2.0 1.6
Total turnover 83.5 0 83.5
Profit/(loss) on ordinary activities before interest and goodwill amortisation
Year on
Year
2003 growth 2002
Analogue Radio #m % #m
Existing operations 13.7 10.2
Acquisition of Wave 105 - 0.2
Acquisition of Today FM - 0.8
Acquisition of Vibe Radio Services Limited
(as a subsidiary) (0.1) -
Acquisition of Vibe Radio Services
Limited (as a joint venture) 0.1 -
-------- -------
Continuing operations 13.7 22 11.2
Score Press
Existing operations 9.6 7.1
Acquisition of Longford Leader - 0.2
Acquisition of Galloway Gazette - 0.1
and Stornoway Gazette -------- -------
Continuing operations 9.6 30 7.4
Sub-total 23.3 25 18.6
Score Outdoor
Discontinued operations - (1.0)
Digital & Internet (1.3) (1.1)
Central costs (2.6) (2.0)
-------- -------
Profit before interest, exceptionals and
goodwill amortisation 19.4 14.5
(Loss) on disposal of subsidiaries - (21.2)
Gain on disposal of tangible fixed assets 0.8 -
-------- -------
Profit/(loss) before interest and 20.2 (6.7)
goodwill amortisation ---------- ---------
3. Net interest payable and other similar charges
Year ended Year ended
30 Sept 2003 30 Sept 2002
#m #m
Bank interest payable (1.7) (0.9)
Loan note interest payable (0.9) (0.8)
--------- ---------
Total interest payable (2.6) (1.7)
Bank interest receivable 0.2 0.2
--------- ---------
Net interest payable (2.4) (1.5)
Foreign exchange (loss) (0.1) (0.2)
--------- ---------
Net interest payable and other similar charges (2.5) (1.7)
========= =========
4. Taxation
The total effective current tax charge for the year ended 30 September 2003 on
profits before goodwill amortisation and exceptional items was 25% (2002 - 25%),
reflecting a number of items including lower tax rates in the Republic of
Ireland.
5. Earnings/(loss) per share
Basic earnings/(loss) per share are
calculated as follows:
2003 2002
Profit/(loss) for the financial year #7.3m (#16.5m)
Weighted average number of shares in issue per Note 17 33,352,694 33,178,567
Basic earnings/(loss) per share 21.9p (49.7p)
Details of shares issued during the year are given in Note 17.
6. Adjusted earnings per share
Adjusted earnings per share are shown in order to enable a better understanding
of the underlying business.
Adjusted earnings per share are calculated using the same number of shares as
explained in Note 5 but are calculated on the profit/(loss) for the financial
year adjusted for goodwill amortisation, exceptional loss on disposal of
subsidiaries and exceptional gain on disposal of tangible fixed assets.
Adjusted earnings per share are calculated as
follows:
2003 2002
Profit/(loss) for the financial year ("Basic earnings") #7.3m (#16.5m)
Add back goodwill amortisation: #5.9m #5.1m
Add back exceptional loss on disposal of subsidiaries - #21.2m
Less exceptional gain on disposal of fixed assets (#0.8m) -
-------- -------
Adjusted profit for the financial year ("Adjusted earnings") #12.4m #9.8m
-------- -------
Weighted average number of shares in issue per Note 17 33,352,694 33,178,567
Adjusted earnings per share 37.2p 29.5p
7. Diluted earnings/(loss) per share
Diluted earnings/(loss) per share are calculated using the earnings explained in
Note 5 but divided by the weighted average number of shares in issue and ranking
for dividend for the year ended 30 September 2003 plus all outstanding relevant
share options at that date.
Diluted earnings/(loss) per share are calculated as follows:
2003 2002
Profit/(loss) for the financial year ("Basic earnings/(loss)") #7.3m (#16.5m)
Weighted average number of shares in issue per Note 17 33,352,694 33,178,567
Effect of dilutive share options 45,224 -
---------- -------------
Diluted weighted average number of shares 33,397,918 33,178,567
---------- -------------
Diluted earnings/(loss) per share 21.9p (49.7p)
8. Dividends
2003 2002
#m #m
Ordinary shares - interim paid 2.2 2.0
Ordinary shares - final proposed 4.3 4.0
--------- ----------
6.5 6.0
========= ==========
Pence Pence
Amount per 10p share - interim paid 6.5 6.0
Amount per 10p share - final proposed 13.0 12.0
--------- ----------
19.5 18.0
========= ==========
9. Intangible fixed assets
(a) Purchased goodwill
Analogue Score
Cost Radio Press Total
#m #m #m
At beginning of year 75.1 - 75.1
Foreign exchange movement 4.3 - 4.3
Adjustments to goodwill for 2002 acquisitions (1.2) - (1.2)
Goodwill arising on acquisition during year including 34.1 - 34.1
amounts transferred from joint venture (provisional) ------- ------ -------
At end of year 112.3 - 112.3
======= ====== =======
Amortisation
At beginning of year 9.2 - 9.2
Charge for year 5.1 - 5.1
Foreign exchange movement 0.1 - 0.1
------- ------ -------
At end of year 14.4 - 14.4
======= ====== =======
Net Book Value
At end of year 97.9 - 97.9
======= ====== =======
At beginning of year 65.9 - 65.9
======= ====== =======
(b) Other intangible assets - newspaper titles
At beginning of year - 47.0 47.0
Adjustments to titles acquired in prior years - (0.2) (0.2)
Foreign exchange movement in year - 3.3 3.3
------- ------ -------
At end of year - 50.1 50.1
------- ------ -------
Total intangible fixed assets at end of year 97.9 50.1 148.0
======= ====== =======
------- ------ -------
Total intangible fixed assets atb eginning of year 65.9 47.0 112.9
======= ====== =======
10. Tangible fixed assets
Heritable Leasehold Fixtures Assets
land and improve- and Technical Motor under
Cost or valuation buildings ments Transmitters fittings equipment vehicles construction Total
#m #m #m #m #m #m #m #m
At beginning of year 10.2 0.6 1.8 5.5 16.5 1.1 - 35.7
Exchange movement 0.1 - - 0.1 0.3 - - 0.5
Acquisitions - - - 0.5 0.6 - - 1.1
Additions 0.8 - 1.1 0.3 2.4 - 0.4 5.0
Disposals (1.3) - - (0.4) (0.8) (0.1) - (2.6)
------ -------- ------- ------ ------- ------ ------- ------
At end of year 9.8 0.6 2.9 6.0 19.0 1.0 0.4 39.7
====== ======== ======= ====== ======= ====== ======= ======
Depreciation
At beginning 2.5 0.3 0.7 4.8 11.4 0.8 - 20.5
Exchange movement - - - 0.1 0.1 - - 0.2
Acquisitions - - - 0.4 0.6 - - 1.0
Charge for year 0.3 - 0.2 0.4 1.5 0.1 - 2.5
Disposals (0.2) - - (0.4) (0.8) (0.1) - (1.5)
------ -------- ------- ------ ------- ------ ------- ------
At end of year 2.6 0.3 0.9 5.3 12.8 0.8 - 22.7
====== ======== ======= ====== ======= ====== ======= ======
Net Book Value ------ -------- ------- ------ ------- ------ ------- ------
At end of year 7.2 0.3 2.0 0.7 6.2 0.2 0.4 17.0
====== ======== ======= ====== ======= ====== ======= ======
At beginning of year 7.7 0.3 1.1 0.7 5.1 0.3 - 15.2
------ -------- ------- ------ ------- ------ ------- ------
11. Investment in Joint Venture
2003 2002
#m #m
Share of turnover 1.4 -
Share of operating profit and profit on ordinary
activities before and after tax 0.1 -
========= =======
Share of gross assets - 0.5
Share of gross liabilities - (1.0)
Goodwill - 19.0
--------- -------
Net investment in joint venture - 18.5
========= =======
A shareholder agreement in respect of a joint venture company, Vibe Radio
Services Limited ("VRS"),
was entered into on 26 September 2002. The ordinary share capital was 51% owned
by SRH and 49% by GWR Group plc. VRS owns and operates the Vibe 101 and Vibe FM
radio stations. On 31 July 2003 SRH acquired the 49% held by GWR and, as a
result, VRS became a wholly owned subsidiary, with the goodwill at the time
being transferred to purchased goodwill (see note 9(a)).
12. Investments
#m
Other unlisted investments - at cost at beginning
and end of year 1.1
========
13. Debtors
2003 2002
#m #m
Trade debtors 17.3 12.8
Other debtors 0.3 2.5
Prepayments and accrued income 2.6 2.3
Deferred tax asset (net) 0.7 -
-------- ---------
20.9 17.6
======== =========
14. Creditors: amounts falling due within one year
2003 2002
#m #m
Bank overdraft (44.5) (28.0)
Trade creditors (3.8) (2.2)
Corporation tax (1.8) (1.2)
Other tax & social security (2.3) (1.7)
Other creditors and accruals (5.4) (5.6)
Loan notes payable in relation to the
acquisition of a subsidiary (22.7) (20.3)
Finance leases and HP contracts - (0.1)
Proposed final dividend (4.3) (4.0)
-------- ---------
(84.8) (63.1)
======== =========
15. Creditors: amounts falling due after more than one year
2003 2002
#m #m
Other creditors (1.2) (1.9)
======== =========
16. Provisions for liabilities and charges
#m #m
2003 2002
Deferred tax (see note 13) - (0.5)
Deferred grant - (0.1)
income -------- ---------
- (0.6)
======== =========
17. Share capital: ordinary shares of 10p each
Weighted
average
Number number
of shares of shares
Issued in issue
At beginning of year 33,312,527 33,312,527
Issued pursuant to the 1998 Executive Share Option Plan 66,000 40,167
-------- ---------
At end of year 33,378,527 33,352,694
======== =========
18. Reconciliations of movements in shareholders' funds
Called up Share Revalu- Special Profit
share premium ation Capital Merger and loss 2003 2002
capital account reserve reserve reserve account Total Total
#m #m #m #m #m #m #m #m
At beginning of year 3.3 77.6 0.9 1.1 20.5 6.8 110.2 130.6
Shares issued for cash - 0.2 - - - - 0.2 0.1
Transfer between reserves - - (0.1) - - 0.1 - 2.0
Net currency translation movement
relating to translation of overseas
subsidiaries - - - - - 5.8 5.8 -
Profit/(loss) for the financial year - - - - - 7.3 7.3 (16.5)
Dividends paid and proposed - - - - - (6.5) (6.5) (6.0)
------- ------ ------ ------ ------ ------ ----- -----
At end of year 3.3 77.8 0.8 1.1 20.5 13.5 117.0 110.2
======= ====== ====== ====== ====== ====== ===== =====
19. Post Balance Sheet Event
On 24 October 2003, the company announced the proposed acquisition of Capital
Radio Productions Limited (FM 104) in Dublin. FM 104 had its licence renewed in
July 2003 for ten years. The consideration will be Euro 26 million (#18,141,100)
adjusted depending on the level of net debt of Capital Radio Productions Limited
at completion. The transaction, which has been approved in principle by the
Broadcasting Commission for Ireland, is conditional on the approval of the
Republic of Ireland Competition Authority and Minister for Enterprise, Trade and
Employment.
20. Annual Accounts
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2002 or 2003. Statutory
accounts for 2002 have been delivered to the Registrar of Companies, whereas
those for 2003 will be delivered following the Annual General Meeting. The
auditors have reported on the 2002 accounts. Their report was unqualified and
did not contain a statement under Sections 237 (2) or 237 (3) of the Companies
Act 1985.
21. Annual General Meeting 2004
It is expected that the Annual General Meeting of the Company will be held at
the Registered Office at 11.00 am on Monday 26th January 2004.
Directors: Lord Gordon of Strathblane CBE (Chairman); Hamish Grossart (Deputy
Chairman); Richard Findlay (Chief Executive); Alan Wilson (Finance
Director); David Goode (MD, Radio); Sunny Crouch; Andy Irvine MBE;
John McColgan, Jamie Matheson ; Sandy Orr.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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